UPDATE 1-Tanger closes on $235 million term loan facility
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NEW YORK, June 11 (Reuters) - Tanger Factory Outlet Centers Inc (SKT.N), an owner of outlet malls, said on Wednesday it has closed on a $235 million unsecured three-year term loan facility that it will use to repay its only remaining mortgage loan.
The mortage loan has a principal balance of about $170.7 million. The real estate investment trust said it would apply the remaining $62.8 million, net of closing costs, against outstanding amounts on its unsecured lines of credit and to settle interest rate lock protection agreements.
Tanger said it would record a $8.9 million cost of the $200 million interest rate lock protection agreements as a charge to earnings and funds from operations in the second quarter.
After the mortgage is repaid this month, Tanger's entire portfolio of wholly owned properties will be unencumbered, a plus among holders of the company's unsecured bonds.
"The syndication of this unsecured term loan has provided us the opportunity to initiate a number of new banking relationships," Steven Tanger, president and chief operating officer, said in a statement. "In the current economic environment, Tanger has demonstrated it has access to attractively priced unsecured capital."
Tanger currently maintains investment grade ratings with Moody's Investors Service, which has an investment-grade rating of Baa3 stable on the company's unsecured debt, and Standard and Poor's Ratings Services, which puts it at BBB- positive. (Reporting by Ilaina Jonas; Editing by Braden Reddall)
